November 11, 2016 - Pro Tips A.M.
MDT AlertWhile the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
GOGO? Long at $19.93
Total Premium Collected? $1.95
ASNA Long at $14.20
Total Premium Collected $.75
DUST Long $4.50
Total Premium Collected? $.70
FCX Long $12.45
Total Premium Collected? $.24
DYN Long at $12.55
Premium Collected $.48
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The Trump rally continued yesterday, with the S & P 500 closing at 2,167.48, up 4.22 points. The high for the day was within 5 points of the 2,187.50 level.
Since the pivot low on November 4th, the market has rallied 100 points.? And the shorter term charts are starting to move into uptrends.? In fact, the 30 minute chart has already crossed over into an uptrend.? And the 60 minute chart is close to moving into an uptrend.
Does that mean that this market will continue to move up?
Of course not.? Especially with the VIX almost back to key long term support.
And yesterday?s price action was almost a perfect doji, with the open almost exactly the close.? As you know, a doji means indecision. With an anticipated bearish open this morning, the close of 2,167.48 should offer resistance.
And if the VIX rises, expect a pullback in the markets.
Continue to monitor the levels for entry points.
Here are the Key Levels for the Markets:
$VIX:
Major level - 25.00
Minor level ? 24.22
Minor level ? 22.66
Major level ? 21.88
Minor level ? 21.10
Minor level ? 19.53
Major level - 18.75 *
Minor level - 17.96
Minor level - 16.41
Major level - 15.63
Minor level - 14.85
Minor level - 13.28
Major level - 12.50
The VIX closed above the 14.06 support level.? Look for this level to offer support. And look for 17.19 to offer resistance.
The 13.28 level offered support yesterday, with a low of 13.26.
$SPX:
Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12
Major level - 2,187.50
Minor level - 2,171.88
Minor level - 2,140.62
Major level - 2,125.00 *
Minor level - 2,109.38 *
Minor level - 2,078.12
Major level - 2,062.50
2,171.90 should offer resistance. 2,156 should offer support..? If the S & P breaks under 2,156, a move to 2,140 would be the objected.
QQQ:?
Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75
Minor level - 117.97
Minor level - 116.41 *
Major level - 115.63 *
Minor level - 114.84
Minor level - 113.28
Major level - 112.50
The QQQ has not benefited from a Trump win. The major FANG stocks have been selling off, which has helped the QQQ drop 1.90 yesterday. The QQQ closed at 115.75.
This is just above the major 115.63 support line.? If the QQQ does break under that level, I would expect a move to 112.50.
Opportunity will exist in some of these FANG stocks. Wait for them to start trading sideways.
TLT:?
Major level - 134.38
Minor level - 133.60
Minor level - 132.03
Major level - 131.25
Minor level ? 130.46
Minor level ? 128.91
Major level ? 128.13
Major level ? 125.00
Major level ? 121.88 *
Major level ? 118.75
The TLT, like the QQQ, has been a casualty of a Trump victory.? The TLT was down another 1.84 to close at 122.73 yesterday.
121.88 is the next major level for the TLT.? If the TLT has two closes under 121.8, it could drop to as low as 113.? This level also happens to be the midband on the daily chart. Looks like a mad exit for the doors.
GLD: ?
Major level ? 125.00 *
Minor level - 124.22
Minor level ? 122.66 *
Major level ? 121.88
Minor level ? 121.10
Minor level ? 119.53
Major level ? 118.75
Minor level ? 117.97
The GLD has been performing as we expected.? The major 125 level acted as resistance, as expected and now the GLD is dropping.
The next objective is to 118.75.? Ultimately, a drop to around 112 should be the objective.
XLE:
Major level - 75.00
Minor level - 74.22
Minor level - 72.66
Major level - 71.88 *
Minor level - 71.10
Minor level - 69.53 *
Major level - 68.75 *
Minor level - 67.96
Minor level - 66.41
Major level - 65.63
The XLE hit a high of 71.28, just 60 cents shy of the 71.88 objective.? 71.88 is a key level that the XLE has to clear.
This is because it is also the midband on the weekly chart.? Short term charts are starting to firm up, so the odds favor a violation of 71.88.? Short term support should be at 70.31.
FXY:
Major level: 96.88
Minor level: 96.49
Minor level: 95.70
Major level: 95.31
Minor level: 94.92
Minor level: 94.14
Major le
vel: 93.75
Minor level: 93.36
Minor level: 92.58
Major level: 92.19 *
Minor level: 91.80
Minor level: 91.02
Major level: 90.63
The FXY took out the 90.63 objective, closing at 90.27. ?89 should offer support.? And 90.63 should be resistance now.
AAPL:
Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.
Apple already hit the 106.25 level.? Yesterday?s high was 15 cents above the 110.94 level, I mentioned yesterday.
103.13 should offer major support.? Minor support is at 106.
WATCH LIST:
Bullish Stocks: FDX, ACN, CXV, DRI, AGO, STLD, DRI, BHI ?
Bearish Stocks:? REGN, TSLA, AGN, PANW, COST, ANTM, CLX, JAZZ, ATHN
Be sure to check earnings release dates
